Press Releases

LAS VEGAS, Aug. 6 /PRNewswire-FirstCall/ -- Southwest Gas Corporation
(NYSE: SWX) recorded a net loss of $0.06 per basic share for the second
quarter of 2008, compared to a loss of $0.01 per basic share recorded during
the second quarter of 2007. Consolidated net loss was $2.7 million, compared
to a loss of $337,000 in the prior-year quarter. Due to the seasonal nature
of the business, net losses during the second and third quarters are normal
and not generally indicative of earnings for a complete twelve-month period.

According to Jeffrey W. Shaw, Chief Executive Officer, "Given the current,
challenging economic environment, we were encouraged with the overall
operating results for the quarter. However, both our gas operations and
construction services segments were negatively impacted by the new
construction market slowdown. In addition, the quarterly net loss reflected
negative returns on long-term investments related to stock market declines.
Looking ahead, we believe we are poised for improvement when currently vacant
homes become occupied (and customers begin taking service) and as market
returns recover." Shaw also noted that, "rate case hearings concluded during
the quarter in the Company's Arizona general rate case application, and
hearings are scheduled later this summer in our California general rate case.
We remain cautiously optimistic that fair outcomes will be achieved before the
winter heating season in Arizona, and by year-end in California."

For the twelve months ended June 30, 2008, consolidated net income was
$80.2 million, or $1.87 per basic share, compared to $85.4 million, or $2.05
per basic share, during the twelve-month period ended June 30, 2007.

Natural Gas Operations Segment Results

Second Quarter

Operating margin, defined as operating revenues less the cost of gas sold,
increased approximately $2.6 million, or two percent, in the second quarter of
2008 compared to the second quarter of 2007. Customer growth contributed
$2 million toward the operating margin increase as the Company added 19,000
customers during the last twelve months, an increase of one percent. Weather
changes between periods accounted for the remaining increase.

Operating expenses for the quarter increased $2.4 million, or two percent,
compared to the second quarter of 2007 primarily due to general cost
increases, higher uncollectible expenses, and incremental operating costs
associated with serving additional customers. Labor efficiencies, resulting
primarily from the conversion to electronic meter reading, mitigated the
increase in operating expenses. Other income, which principally includes
interest income, long-term investment returns, and non-utility expenses,
decreased $4.3 million between periods. This was primarily due to negative
returns on long-term investments in the current quarter versus positive
returns in the prior year's quarter. Net financing costs were relatively flat
between periods.

Twelve Months to Date

Operating margin increased $17 million, or two percent, between periods.
Rate changes accounted for $9 million of the increase and customer growth
contributed $8 million. Warmer-than-normal temperatures were experienced
during both twelve-month periods (each with estimated negative impacts to
operating margin of approximately $7 million), resulting in no incremental
impact between the periods.

Other income decreased $12.5 million between periods primarily due to
negative returns on long-term investments in the current twelve-month period
(versus favorable returns in the prior-year period) and lower interest income
due to the full recovery of previously deferred purchased gas cost
receivables. The prior-year period also included non-recurring gains on
dispositions of miscellaneous properties. Net financing costs between periods
increased $1.4 million, or two percent, primarily due to interest expense
associated with higher deferred PGA balance payables and higher rates on
variable-rate debt.

This press release may contain statements which constitute
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995 (Reform Act). All such forward-looking
statements are intended to be subject to the safe harbor protection provided
by the Reform Act. A number of important factors affecting the business and
financial results of the Company could cause actual results to differ
materially from those stated in the forward-looking statements. These factors
include, but are not limited to, the impact of weather variations on customer
usage, customer growth rates, conditions in the housing market, the effects of
regulation/deregulation, the timing and amount of rate relief, and changes in
rate design.